- Title
- Strategies to improve employee financial intelligence
- Creator
- Botha, Perine
- Subject
- Financial literacy
- Date Issued
- 2020
- Date
- 2020
- Type
- Thesis
- Type
- Masters
- Type
- MBA
- Identifier
- http://hdl.handle.net/10948/47486
- Identifier
- vital:40118
- Description
- South African employees are largely indebted, with the majority of their disposable income used to service debt. The potential causes of this problem include the levels of education of individuals, how investors perceive the political climate in the country, levels of disposable income and the spending habits of individuals. This study aims to assist organisations to improve employee financial intelligence by investigating what influences financial intelligence. To ascertain these influences, the respondents’ level of financial literacy is to be determined as well. Financial literacy is assessed by determining a respondents’ knowledge of numeracy, risk diversification, compound interest and inflation. Additional factors such as debt management, saving culture and access to digital information too have an impact on financial literacy. An empirical study, consisting of a questionnaire was conducted among employees of a state-owned enterprise (SOE) in the Eastern Cape Province of South Africa. These employees represent both the management and junior employee profiles. The study found that 75% of the respondents were not financially literate. Financial literacy rates globally are at 51%, however, in a major emerging economy such as South Africa, the rate is between 48% and 51%. The results of the study however indicate that it is much lower than the global average as well as for that of similar developing countries. The results of the study indicate that age, gender, job grade, level of education, access to digital information, a savings culture, budgeting and debt management do not significantly influence financial literacy in the context of SouthAfrica.The research indicates that the respondents are, however, willing to learn and be educated to increase their financial knowledge and awareness. Possible strategies which could assist in improving levels of financial intelligence are:•Financial literacy courses offered by employers;•Research undertaken by employees themselves could increase their financial literacy; Employee wellness programmes, such as debt counselling, could improve the financial literacy of employees;•Completion of online courses would improve the employees’ level of financial literacy;•Budgeting and money management courses;•Financial advisors to be appointed by employers;•Debt counselling of employees.
- Format
- xiv, 117 leaves
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Business and Economic Sciences
- Language
- English
- Rights
- Nelson Mandela University
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| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | Botha, PA 200327186 Treatise April 2020.pdf | 1 MB | Adobe Acrobat PDF | View Details Download |